In Q2 2024, crypto fundraising increased slightly as startups secured $2.7 billion across 503 deals. This represents a 2.5% increase in invested capital “but a 12.5% decline in deal volume compared with the previous quarter,” according to an extensive report from PitchBook.
PitchBook noted in its report that the “increasing deal value yet lower deal count suggests that deal sizes increased overall during the quarter.”
PitchBook also mentioned that “with positive investor sentiment returning to crypto and barring any major market downturns, they expect the volume and pace of investments to continue increasing throughout the year.”
PitchBook further noted in its comprehensive report that infrastructure startups “continued to lead the way in funding during the quarter, with the largest rounds raised by parallelization Layer 1 platform Monad ($225.0 million Series A), DeFi-specific Layer 1 platform Berachain ($100.0 million Series B), and bitcoin restaking platform Babylon ($70.0 million early-stage round).”
PitchBook pointed out that the other two mega-rounds of the quarter “went to Farcaster, which raised a $150.0 million Series A round at a $1.0 billion postmoney valuation, and to blockchain-based gaming platform Zentry, which raised a $140.0 million early-stage round.”
PitchBook added that when “compared with full-year 2023, valuations were up for the seed stage and the early stage yet were down for the late stage.”
The researchers at PitchBook also noted that the “median pre-money valuation for the seed stage was $23.0 million; the early stage, $63.8 million; and the late stage, $40.8 million, representing changes of +97.0%, +166.0%, and -36.0%, respectively, from full-year 2023. These numbers indicate that investment rounds have become highly competitive at the earlier stages but less so at the late stage.”
According to PitchBook research, this trend is “on par with the broader venture market.”
The PitchBook report concluded that deal sizes also “reflected the valuation trends, with median figures registering at $2.8 million for the seed stage, $4.5 million for the early stage, and $6.5 million for the late stage, representing changes of +27.3%, +13.3%, and -7.4%, respectively, from full-year 2023.”